All good answers! Banks set a minimum bid that will allow them to recoup what they can from any insurance (PMI) that may exist for that loan, then re-sell property later thru MLS or auctions at a lower price. IF you buy at the court house steps (as I have) you need cashiers checks for the whole amount of your bid immedialtely and you don't get Title insurance so you could then be responsible for other liens. You will frequesntly get a better deal after the Trustee sale thru MLS listings and you will get title insurance and be able to finance the purchase and inspect the property thoroughly.
Molly Thompson, Broker Assoc, APR